30% Apple

[Mark J Dulcey]

On 2/17/2011 10:03 AM, Jarod Wilson wrote:

> And yet, nobody else seems to have a truly competitive tablet for
> less than the iPad...

Of course they don't. Apple can price the iPad at an unprofitable level, 
just as the manufacturers of game consoles do, because they have the 30% 
app and subscription tax as part of their revenue stream. Makers of 
Android devices can't do that because Google (or the operator of an 
alternative app store such as Amazon) gets the revenue from app sales, 
not the device manufacturer. Besides, Android owners don't buy nearly as 
many apps; "sales" on the Android market are dominated by free apps.